Small businesses to pay tax

Business

BUSINESSES which have a turnover of K50,000 will pay a K400 turnover tax a year under the new small business tax regime soon to be rolled out by the Internal Revenue Commission (IRC).
Commissioner-general Sam Koim said yesterday during the renewal of a memorandum of understanding (MOU) with the Western Highlands government said that the commission was preparing to implement the new tax regime.
“We have a new tax regime (which has) already been introduced in Parliament,” he said. “We are putting all the systems and processes in place to roll it out.
“It is the small business tax regime that will capture people below a K50,000 turnover so they don’t need to file a lot of things, pay a lot of time but pay a K400 turnover tax once in a year.
“It’s a small subscription tax or annual subscription so those are the things that we would like to roll it out to bring the untaxed into the tax regime so that everyone participate in sharing the burden of developing this country.”
Koim said the IRC would also like to contribute to the growth of entrepreneurs, hence, it would be partnering with the provincial governments to carry out awareness on how to conduct business.
It will cover record-keeping and how to separate business money from other forms of money.
“W in the Murat local level government area e would like to go and at least bring some discipline in the budding businesses and those people who have aspirations to become businesses people,” Koim said.

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